I am advising an entrepreneur who is close to raising money. He is looking at 1 soft offer (not a term sheet) from a VC, a buyout offer from a media company and an investment offer from another.
He asked me this, and not being one to pontificate when I am not 100% of the answer, I am turning this over to you people.
We’ve read about how VCs have changed their modus operandi to reflect the times (for example, they are now more willing than ever to let entrepreneurs take money off the table etc.), I wonder, have strategic investors changed, too?
Previously media companies invested asking for control (over 50%), rights (Right of First Refusal, etc.).
But now that traditional media is seeing an acceleration of their business (audience and advertising clients) and more of them understand that they need to acquire companies to accelerate organic growth, do you think that Big Media is more or less willing to show flexibility in what they ask for in their deals?
Interesting question. If anyone has any cases or arguments, leave in comments (I know, I need to get rid or improve the Captcha) or email me ash@mojosupreme.com.
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